This blog posts answers to questions given to us by ministers and others serving in Christian ministries advancing the gospel of Jesus Christ. It also discusses other financial topics that those in gospel ministries face. We trust the information provided can be helpful to you.

Search This Blog

Online Payroll Services for Churches

Question:Can you recommend an online payroll processing service for churches?Answer:

We are not aware of any services that specifically target churches at this time. Existing services such as Paychecks, ADP, and Intuit's Paycycle are not always familiar with the unique characteristics of ministerial vs. non-ministerial compensation. MinistryCPA does not offer an online payroll processing service. However, we have been able to assist multiple churches to process their own payrolls. This last year, MinistryCPA aided 26 churches in preparing quarterly and annual payroll reports in cooperation with the work of their own personnel.

Ministries interested in a personal consultation should post a blog inquiry with suggested time(s) that will be best to call at a phone number they should provide. Also, they typically provide a website address for the organization, if available. The ministry's website may help us to understand the nature of the organization and whether we might be qualified to serve it.

We respond with a suggested phone appointment time, cost information, and disclosures that we as CPAs are required to make when we provide consultation services.

Labels

Comments

What exactly does a church need to have specifically that a normal or online payroll service doesn't specifically provide?

I'm asking because we are in Arkansas and have made our payroll program accommodate farmers with multiple sources of income. We want to provide a great service to all businesses, and this post really got my gears turning about how different businesses can benefit from a customized payroll system.

An example might be that you need to Geo-locate your workers when they clock in from their cell phones if they are doing missionary or other ministry work in another city or even overseas. This feature was originally made for construction contractors to keep track of their subordinates.

I'm extremely interested in hearing what churches may need to have a customized payroll solution that will help their business! Please email me at greg@tcoa.net or just comment on my post, as I am following it and your blog from now on! Keep up the great posts.

Post a Comment

Popular posts from this blog

If a minister rents his principal residence, but he performs services (mowing the lawn, repairing the roof, etc.) in lieu of rent, can he still qualify the rent amount for a housing allowance tax benefit?

Answer:

Of course, bartering income is taxable. The Internal Revenue Code interprets that above situation as follows: tenant/minister receives taxable income for the fair market value of the services he provides, andtenant/minster pays landlord for renal of residence.
The minister in this case reports taxable income for services provided in lieu of rent. It is also likely subject to self-employment tax. He may then claim as qualifying housing allowance expense equal to the amount he "pays" for rent of his personal residence. Essentially, there is no difference than if the minister and his landlord simply traded checks.

A church group went on a two-week mission trip, and a few of the members stayed an additional two weeks for personal time. Will the members who stayed the two additional weeks be able to deduct expenses from the trip?

Answer:

IRS Pub 526 covers the
topic of Charitable Contributions and, more specifically, travel expenses
associated with charitable trips. The
publication states that travel expenses will be deductible “if there is no significant element
of personal pleasure, recreation, or vacation in the travel.” The publication
also states, “The deduction for travel expenses won't be denied simply because
you enjoy providing services to the charitable organization. Even if you enjoy
the trip, you can take a charitable contribution deduction for your travel
expenses if you are on duty in a genuine and substantial sense throughout the
trip. However, if you have only nominal duties, or if for significant parts of
the trip you don't have any duties, you can't deduct you…

Should
403(b) contributions and the subsequent match be based on the pastor's total
income from the church (including housing allowance) or just from the salary minus
housing allowance?

Answer:

According
to Richard R. Hammar, J.D., LL.M., CPA, in his book 2015 Church & Clergy Tax Guide, “Section 107 of the tax code
specifies that a minister’s housing allowance (or the annual rental value of a parsonage)
is not included in the minister’s
gross income for income tax reporting purposes. Therefore, it would appear that
the definition of includible compensation for purposes of computing the limit
on annual additions to a 403(b) plan would not
include the portion of a minister’s housing allowance that is excludable from
gross income."

Corey Pfaffe

Contributors

Links

Disclaimer:

This information is provided as a service of MinistryCPA.org to ministers and Christian ministries. Please contact me or your personal professional advisor to determine how this information may apply to your own situation.